Another president embracing encryption has taken to the political stage.
Written by: Jaleel Jia Liu
South Korea, this prosperous encryption market, has chosen Lee Jae-myung as president to promote the Korean won stablecoin and encryption ETFs.
As a core member of the Democratic Party, Lee Jae-myung narrowly lost to Yoon Suk-yeol in the 2022 presidential election. At that time, he positioned encryption currency policy as an important political stance to attract support from young people and retail investors. However, after two consecutive election defeats, he was once labeled as the "eternal candidate."
Until that day. In December 2024, the political landscape in South Korea changed dramatically. The then-President Yoon Suk-yeol was swiftly impeached due to attempting to declare a state of emergency, triggering a constitutional crisis under the dual pressure of public opinion and the National Assembly. This crisis not only left the presidential seat vacant two years earlier than expected but also disrupted the existing power balance, unexpectedly creating an opportunity for Lee Jae-myung, a political figure who has faced multiple defeats yet continues to fight.
But when the power structure collapsed and the parliament was in turmoil, Lee Jae-myung quickly seized the opportunity. He called the lawmakers into the parliamentary hall, initiated a live broadcast, and climbed over the wall into the parliament with the support of the people.
From that day on, Lee Jae-myung became a more suitable presidential candidate in the hearts of the Korean people. "I must let as many citizens as possible understand this situation as soon as possible." He called on the public to witness the process of the National Assembly overturning the martial law in a live broadcast.
In the end, in the presidential by-election announced last night, Lee Jae-myung won with a 49.2% vote share, leading his opponent Kim Moon-soo (36.8%), successfully elected as the 21st president of South Korea. For his supporters, this is a victory of "winning at all costs," a battle for vindication after three attempts at election.
For the Korean encryption industry, the victory of Lee Jae-myung may have even more far-reaching significance: he is not only a political winner but also one of the most steadfast advocates for encryption policy. His election marks a fundamental institutional shift in the regulation of digital assets in South Korea.
Lee Jae-myung's Commitment to South Korea's encryption
Before taking office, Lee Jae-myung had already proposed a series of clear digital asset policy claims during his campaign.
He positions virtual assets as a key component of national financial reform and, for the first time, incorporates them into a presidential-level commitment system. The goal is to reshape the legitimacy and security of the encryption market through top-level institutional design.
Lee Jae-myung's commitment to the "Korean secret industry" includes the following core content:
Promote the legalization of virtual asset spot ETFs;
Guide the large-scale National Pension Service of South Korea (approximately $884 billion) to allocate encryption assets;
Build a stablecoin system anchored to the Korean won, using it as a strategic tool to prevent capital outflow and strengthen the financial sovereignty of the local currency.
Among them, the most notable is his obsessive advocacy for the South Korean won stablecoin. In a live YouTube broadcast, Lee Jae-myung publicly stated, "In order to prevent the outflow of national wealth, it is necessary to establish a stable currency market based on the won." This statement not only reflects his keen insight into the international competitive landscape of digital assets, but also directly responds to regulators' concerns about the increasing share of US dollar stablecoins such as Tether (USDT) and USD Coin (USDC) in South Korea's domestic transactions.
According to data from the Bank of Korea, in the first quarter of 2025 alone, the trading volume of stablecoins pegged to the US dollar reached 57 trillion won, accounting for more than half of the total trading volume of stablecoins.
To achieve these goals, Lee Jae-myung plans to "restructure the market led by the government, reduce transaction fees, and establish a comprehensive regulatory system," and to promote the establishment of a dedicated "Digital Asset Regulatory Bureau." The core idea is to provide a safer trading environment for ordinary investors through official leadership, and to transform encryption assets from a "speculative tool" into an "asset allocation option."
This is not Lee Jae-myung's first statement in the digital finance sector. As early as 2021, he advocated for postponing the virtual asset income tax originally scheduled to be imposed in 2022, emphasizing "regulation first, taxation later." He also proposed significantly raising the tax threshold from 2.5 million won to 50 million won, which is on par with stock investments, and allowing loss deductions to alleviate the burden on retail investors and enhance policy fairness.
Today, this policy roadmap centered around ETFs, stablecoins, and regulatory systems is no longer just a campaign slogan; it is gradually being transformed into concrete proposals under Lee Jae-myung's administration. For the South Korean encryption industry, this may signify a whole new stage of development – moving from the margins of the financial system to the core of the institution.
Once Luna collapses, will it take ten years to count safely?
However, Lee Jae-myung's plan to promote the stability of the Korean won stablecoin is not without controversy.
Shortly after he proposed the establishment of a local Korean won stablecoin market, Lee Jun-seok, the presidential candidate of the New Reform Party, launched a fierce attack on social media. He wrote: "Candidate Lee Jae-myung's economic views are always dangerous and experimental. He recklessly throws out untested ideas, clearly lacking an understanding of the market, and is merely repeating hollow slogans."
Lee Joon-seok singled out the Terra/Luna incident, a "stablecoin" project that claims to be pegged to the South Korean won but relies on algorithms to maintain prices, which shocked the world. The collapse of the project caused hundreds of thousands of investors to lose their money, casting a huge shadow over the term "stablecoin" in the minds of the South Korean public and becoming a major breakthrough for the conservative camp to attack Lee Jae-myung's policies. Lee Joon-seok accused Lee Jae-myung of "repeating the mistakes of the past" and "endorsing an illusory structure with the credit of the state."
In response, the Democratic camp quickly fought back. Former lawmaker Kim Byung-wook publicly stated: "Completely rejecting the won stablecoin based on the Terra and Luna incidents alone is obviously contrary to the international regulatory trend." "Major regulators in the US, Europe and Japan have explicitly excluded 'algorithmic stablecoins' (such as Terra/Luna) from the category of compliant stablecoins, arguing that they are too volatile to be a reliable store of value," he explained.
Jin Bingxu emphasized that a truly compliant stablecoin should adopt a "1:1 full collateral" model, meaning it should be fully backed by cash or safe assets such as short-term government bonds, with real-time disclosure of reserve status and an obligation for immediate redemption. He pointed out that current mainstream options like Tether (USDT) belong to this category. In contrast, Lee Jun-sik's blanket denial of all stablecoins reveals his misunderstanding of the global encryption regulatory framework.
Another Democratic congressman, Min Bingde, responded with more irony: "If we were to eliminate the entire printing process because of a broken photocopier, that would be ridiculous." He compared stablecoins to a stage in the development of financial technology, emphasizing that their development should be regulated through institutional oversight rather than being completely banned due to individual failure cases.
South Korea's encryption ecosystem enters a new cycle of "nationalization"
Against the backdrop of Lee Jae-myung's victory, South Korea's encryption industry is quietly entering a new policy-driven cycle.
Unlike the past when the market was characterized by chaotic growth and various platforms fighting against each other, today's market resembles a game reshuffled around "systemic dividends."
South Korea is already one of the most active cryptocurrency markets in the world. According to statistics from the Financial Intelligence Unit (FIU) of South Korea, as of the end of 2024, the number of cryptocurrency investors who have completed real-name verification has reached 9.7 million, a year-on-year increase of 25%. Notably, there has been significant growth in investors aged 30 to 50, with those aged over 40 accounting for about 78% of the high-net-worth group holding assets valued at over 100 million won. This structural change indicates that crypto assets are gradually shedding the stereotype of being a "young people's speculative tool" and becoming part of asset allocation for the middle class and above.
At the same time, South Korea's crypto trading market will show explosive growth in 2025, with the total trading market value exceeding 100 trillion won, even surpassing the trading volume of the domestic stock market at one point. This round of growth is spurred both by expectations of domestic policy easing and by the global political and economic situation. In particular, in the context of Trump's re-election as U.S. president, which triggered the risk aversion of US dollar assets, a large number of local investors in South Korea poured into the won-denominated virtual asset market, forming a wave of regional capital repatriation.
In response to the active market, regulation is also gradually catching up. The government has announced that the virtual asset transfer income tax, originally scheduled to be implemented in 2025, has been postponed to 2027, citing "the technology is not yet mature" and "the investor protection system is still incomplete." This move effectively calmed market sentiment and provided a buffer period for Lee Jae-myung's new regulatory framework.
However, delaying taxation does not equate to relaxing regulation. The Virtual Asset User Protection Act (VAUPA), which was introduced in 2024, has officially come into effect, imposing stricter compliance requirements on trading platforms, including asset custody mechanisms, insider trading prevention, and core contents such as user asset segregation management. The government’s intention is clear: to prevent a repeat of trust crises like that of Terra/Luna through more robust institutional design, laying the foundation for the "normalization" of the encryption market.
This series of policy signals conveys a clear message: the South Korean government is committed to incorporating encryption assets into the national financial governance system, promoting the market's transformation from laissez-faire to a "nationalized" institutional embedding. This is precisely the vision depicted by Lee Jae-myung – a digital asset market guided by the government, guaranteed by rules, and driven by innovation.
The future of South Korea's encryption policy may not be smooth sailing. The controversies surrounding stablecoins, the implementation of taxation, and the coordination of international regulation are still present. However, it is certain that during Lee Jae-myung's administration, cryptocurrency will no longer be a gray area that is avoided in discussions, but rather included in the national strategy outlined in the presidential promises. The cryptocurrency industry in South Korea has finally welcomed a formal starting point.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
The new president of South Korea, Lee Jae-myung, aims to do three things in the crypto world.
Written by: Jaleel Jia Liu
South Korea, this prosperous encryption market, has chosen Lee Jae-myung as president to promote the Korean won stablecoin and encryption ETFs.
As a core member of the Democratic Party, Lee Jae-myung narrowly lost to Yoon Suk-yeol in the 2022 presidential election. At that time, he positioned encryption currency policy as an important political stance to attract support from young people and retail investors. However, after two consecutive election defeats, he was once labeled as the "eternal candidate."
Until that day. In December 2024, the political landscape in South Korea changed dramatically. The then-President Yoon Suk-yeol was swiftly impeached due to attempting to declare a state of emergency, triggering a constitutional crisis under the dual pressure of public opinion and the National Assembly. This crisis not only left the presidential seat vacant two years earlier than expected but also disrupted the existing power balance, unexpectedly creating an opportunity for Lee Jae-myung, a political figure who has faced multiple defeats yet continues to fight.
But when the power structure collapsed and the parliament was in turmoil, Lee Jae-myung quickly seized the opportunity. He called the lawmakers into the parliamentary hall, initiated a live broadcast, and climbed over the wall into the parliament with the support of the people.
From that day on, Lee Jae-myung became a more suitable presidential candidate in the hearts of the Korean people. "I must let as many citizens as possible understand this situation as soon as possible." He called on the public to witness the process of the National Assembly overturning the martial law in a live broadcast.
In the end, in the presidential by-election announced last night, Lee Jae-myung won with a 49.2% vote share, leading his opponent Kim Moon-soo (36.8%), successfully elected as the 21st president of South Korea. For his supporters, this is a victory of "winning at all costs," a battle for vindication after three attempts at election.
For the Korean encryption industry, the victory of Lee Jae-myung may have even more far-reaching significance: he is not only a political winner but also one of the most steadfast advocates for encryption policy. His election marks a fundamental institutional shift in the regulation of digital assets in South Korea.
Lee Jae-myung's Commitment to South Korea's encryption
Before taking office, Lee Jae-myung had already proposed a series of clear digital asset policy claims during his campaign.
He positions virtual assets as a key component of national financial reform and, for the first time, incorporates them into a presidential-level commitment system. The goal is to reshape the legitimacy and security of the encryption market through top-level institutional design.
Lee Jae-myung's commitment to the "Korean secret industry" includes the following core content:
Among them, the most notable is his obsessive advocacy for the South Korean won stablecoin. In a live YouTube broadcast, Lee Jae-myung publicly stated, "In order to prevent the outflow of national wealth, it is necessary to establish a stable currency market based on the won." This statement not only reflects his keen insight into the international competitive landscape of digital assets, but also directly responds to regulators' concerns about the increasing share of US dollar stablecoins such as Tether (USDT) and USD Coin (USDC) in South Korea's domestic transactions.
According to data from the Bank of Korea, in the first quarter of 2025 alone, the trading volume of stablecoins pegged to the US dollar reached 57 trillion won, accounting for more than half of the total trading volume of stablecoins.
To achieve these goals, Lee Jae-myung plans to "restructure the market led by the government, reduce transaction fees, and establish a comprehensive regulatory system," and to promote the establishment of a dedicated "Digital Asset Regulatory Bureau." The core idea is to provide a safer trading environment for ordinary investors through official leadership, and to transform encryption assets from a "speculative tool" into an "asset allocation option."
This is not Lee Jae-myung's first statement in the digital finance sector. As early as 2021, he advocated for postponing the virtual asset income tax originally scheduled to be imposed in 2022, emphasizing "regulation first, taxation later." He also proposed significantly raising the tax threshold from 2.5 million won to 50 million won, which is on par with stock investments, and allowing loss deductions to alleviate the burden on retail investors and enhance policy fairness.
Today, this policy roadmap centered around ETFs, stablecoins, and regulatory systems is no longer just a campaign slogan; it is gradually being transformed into concrete proposals under Lee Jae-myung's administration. For the South Korean encryption industry, this may signify a whole new stage of development – moving from the margins of the financial system to the core of the institution.
Once Luna collapses, will it take ten years to count safely?
However, Lee Jae-myung's plan to promote the stability of the Korean won stablecoin is not without controversy.
Shortly after he proposed the establishment of a local Korean won stablecoin market, Lee Jun-seok, the presidential candidate of the New Reform Party, launched a fierce attack on social media. He wrote: "Candidate Lee Jae-myung's economic views are always dangerous and experimental. He recklessly throws out untested ideas, clearly lacking an understanding of the market, and is merely repeating hollow slogans."
Lee Joon-seok singled out the Terra/Luna incident, a "stablecoin" project that claims to be pegged to the South Korean won but relies on algorithms to maintain prices, which shocked the world. The collapse of the project caused hundreds of thousands of investors to lose their money, casting a huge shadow over the term "stablecoin" in the minds of the South Korean public and becoming a major breakthrough for the conservative camp to attack Lee Jae-myung's policies. Lee Joon-seok accused Lee Jae-myung of "repeating the mistakes of the past" and "endorsing an illusory structure with the credit of the state."
In response, the Democratic camp quickly fought back. Former lawmaker Kim Byung-wook publicly stated: "Completely rejecting the won stablecoin based on the Terra and Luna incidents alone is obviously contrary to the international regulatory trend." "Major regulators in the US, Europe and Japan have explicitly excluded 'algorithmic stablecoins' (such as Terra/Luna) from the category of compliant stablecoins, arguing that they are too volatile to be a reliable store of value," he explained.
Jin Bingxu emphasized that a truly compliant stablecoin should adopt a "1:1 full collateral" model, meaning it should be fully backed by cash or safe assets such as short-term government bonds, with real-time disclosure of reserve status and an obligation for immediate redemption. He pointed out that current mainstream options like Tether (USDT) belong to this category. In contrast, Lee Jun-sik's blanket denial of all stablecoins reveals his misunderstanding of the global encryption regulatory framework.
Another Democratic congressman, Min Bingde, responded with more irony: "If we were to eliminate the entire printing process because of a broken photocopier, that would be ridiculous." He compared stablecoins to a stage in the development of financial technology, emphasizing that their development should be regulated through institutional oversight rather than being completely banned due to individual failure cases.
South Korea's encryption ecosystem enters a new cycle of "nationalization"
Against the backdrop of Lee Jae-myung's victory, South Korea's encryption industry is quietly entering a new policy-driven cycle.
Unlike the past when the market was characterized by chaotic growth and various platforms fighting against each other, today's market resembles a game reshuffled around "systemic dividends."
South Korea is already one of the most active cryptocurrency markets in the world. According to statistics from the Financial Intelligence Unit (FIU) of South Korea, as of the end of 2024, the number of cryptocurrency investors who have completed real-name verification has reached 9.7 million, a year-on-year increase of 25%. Notably, there has been significant growth in investors aged 30 to 50, with those aged over 40 accounting for about 78% of the high-net-worth group holding assets valued at over 100 million won. This structural change indicates that crypto assets are gradually shedding the stereotype of being a "young people's speculative tool" and becoming part of asset allocation for the middle class and above.
At the same time, South Korea's crypto trading market will show explosive growth in 2025, with the total trading market value exceeding 100 trillion won, even surpassing the trading volume of the domestic stock market at one point. This round of growth is spurred both by expectations of domestic policy easing and by the global political and economic situation. In particular, in the context of Trump's re-election as U.S. president, which triggered the risk aversion of US dollar assets, a large number of local investors in South Korea poured into the won-denominated virtual asset market, forming a wave of regional capital repatriation.
In response to the active market, regulation is also gradually catching up. The government has announced that the virtual asset transfer income tax, originally scheduled to be implemented in 2025, has been postponed to 2027, citing "the technology is not yet mature" and "the investor protection system is still incomplete." This move effectively calmed market sentiment and provided a buffer period for Lee Jae-myung's new regulatory framework.
However, delaying taxation does not equate to relaxing regulation. The Virtual Asset User Protection Act (VAUPA), which was introduced in 2024, has officially come into effect, imposing stricter compliance requirements on trading platforms, including asset custody mechanisms, insider trading prevention, and core contents such as user asset segregation management. The government’s intention is clear: to prevent a repeat of trust crises like that of Terra/Luna through more robust institutional design, laying the foundation for the "normalization" of the encryption market.
This series of policy signals conveys a clear message: the South Korean government is committed to incorporating encryption assets into the national financial governance system, promoting the market's transformation from laissez-faire to a "nationalized" institutional embedding. This is precisely the vision depicted by Lee Jae-myung – a digital asset market guided by the government, guaranteed by rules, and driven by innovation.
The future of South Korea's encryption policy may not be smooth sailing. The controversies surrounding stablecoins, the implementation of taxation, and the coordination of international regulation are still present. However, it is certain that during Lee Jae-myung's administration, cryptocurrency will no longer be a gray area that is avoided in discussions, but rather included in the national strategy outlined in the presidential promises. The cryptocurrency industry in South Korea has finally welcomed a formal starting point.